There has never been a better time to sell online.
Since the world shifted online by the Corona Virus pandemic, online shopping has exploded and many small businesses have turned to online marketplaces and platforms such as Shopee, Lazada, Zalora, etc. to keep pace with increased competition and changing consumer preferences.
However, thousands of companies both large and small are finding some discrepancies while selling on them. To increase profits, these online marketplaces at times raise subscription fees, they revise algorithms pressuring sellers to focus on price.
Sellers are also forced to advertise in order to maintain visibility in the throngs of competitions selling very similar products.
On these platforms, sellers are made to comply with guidelines that do not allow them to serve customers personally and in their own preferred ways. Selling via a marketplace builds the marketplace’s brand and business – not the brand or business of the owner.
SEA’s online marketplace
# | Type | Name | Region/Country | Product Category | SE Asia Visits/month |
1 | Shopee | Southeast Asia | General | 197.8M | |
2 | Lazada | Southeast Asia | General | 161.7M | |
3 | Tokopedia | Indonesia | General | 72.4M | |
4 | Bukalapak | Indonesia | General | 26.8M | |
5 | Tiki | Vietnam | General | 22.0M | |
6 | Blibli | Indonesia | General | 15.8M | |
7 | Sendo | Vietnam | General | 11.4M | |
8 | Zalora | Southeast Asia | Fashion | 7.7M | |
9 | Qoo10 | Southeast Asia | General | 7.0M |
Online Marketplaces Vs e-Commerce: Which is better?
If you have been in the playing field for some time and have sought out sound options, you’ve probably heard pros and cons for both choices.
While each type of platform offers perks, there are some key benefits of having your own e-commerce vs marketplace tools that business owners should be aware of before making a decision.
Online marketplaces have indeed made it much easier for sellers to reach new customers, but conducting business on them carries significant risks and costs. Sellers should limit their dependence by investing in their own channels, such as branded websites and apps, to reach and serve customers directly.
With the Government’s generous 80% subsidy of the PSG grant, small business owners are in the driving seat to manage their own business, grow it, and white label it. We are more than equipped with the tools and knowledge today to play the key role in driving our business’ continued success.